A recent report stated that the Transstroy Company which managed to get the Polavaram Project construction work has diverted Rs 3,822 crore from the bank loan amount for other purposes.

The bankers have submitted a detailed report to CBI on the financial irregularities indulged by the Transstroy company.

The banks which gave loans to the company have later found out that from the loan given the banks the company has donated jewelry to many temples. The bank books stated that gold sarees were donated to goddess Padmavati worth Rs 5.28 crore.

"The consortium of banks sanctioned loans for a specific purpose which is mentioned in the sanction letters. Donating gold to temples cannot be the purpose for which the money was lent. The company has diverted the funds and showed it as donations," banks informed the CBI.

"The banks have found in their forensic audit reports that the company had written off Rs 794 crore adjusting it towards reserves and surplus. Further, the stock statements for the period April 2016-March 2017 revealed that the total stock receipts' value for 12 months amounted to Rs 2,568.77 crore but total purchases for the period were Rs 270.49 crore and the difference of Rs 2,298.28 crore has been unaccounted for," a close source of CBI said.

The Transstroy company was funded by a board of banks for their businesses. The company has, however, took an extra loan of Rs 2,261 crore from other banks without informing the bank board and it was found that the loan amount was diverted for other purposes.

The Union Bank Of India's report the company has received Rs 200 crore from the promoters for the equity infusion.